Semiconductor Industry Faces Turbulent Market Conditions
Published on 4.16.25
The impact of the ongoing market downturn and trade tensions is being felt across the semiconductor industry, with US chipmakers struggling to adapt to changing circumstances. Taiwan Semiconductor Manufacturing Co. (TSMC), a key player in the industry, has seen its shares fall due to US curbs on chip sales to China.
In an effort to address these challenges, Intel and TSMC have reached a preliminary agreement to form a joint venture to operate Intel's factories, with TSMC taking a 20% stake. This move is seen as a strategic response to the semiconductor boom that has left Intel struggling to keep pace.
Intel recently reported an $18.8 billion net loss in 2024, its first since 1986, following the appointment of Lip-Bu Tan as CEO to revive its fortunes. The White House and Commerce department officials have been pushing for this deal to resolve Intel's long-running crisis.
The semiconductor industry is facing significant challenges as investors struggle with confidence due to US tariff threats and doubts over future demand for semiconductors.